Investment Trust

Investment Trust Actually a company, not a trust in the strict sense, it invests shareholder’s funds in a wide variety of securities, carefully chosen by investment analysts, with the objective of providing capital appreciation and income. The risk is diversified, unless the company publicly asserts that its policy is aggressively growth – oriented.

The reason these should be called companies is that investors re their shareholders, whereas in a trust proper, such as the Unit Trust and India , investors are unit holders, and have no say in policy matters.

For the small investor, these companies, owing to their professional expertise, perhaps offer better opportunities for gains than individual